New Product - Alto Starter Kit
The Alto Starter Kit might be the best investment you ever make in your business. Investing $100 in brewing equipment and $2,500 on coffee can generate $13,000 in sales!
Cost Breakdown
The Alto Starter Kit ($100) includes all of the equipment needed for 50 batches of cold brew:
- One - 7 gallon food grade plastic brewing vessel with a bottling spigot, strainer basket and lid
- 50 Alto Commercial Cold Brew Filters
- 50 food grade plastic cable ties
Alto’s recommended cold brew recipe calls for 5lbs of coarse ground coffee per batch.
While specialty coffee prices can vary wildly based on a number of factors, we used a wholesale cost of $10/lb for the sake of these calculations. Alto recommends adding 5 gallons of water to brew the concentrate but the cost of water is minimal. This brew ratio yields ~4 gallons of concentrate and ~7 gallons of ready-to-drink (RTD) cold brew.
$100 kit + $50/batch * 50 batches yields a total cost of $2,600 to produce 350 gallons of RTD cold brew.
Sales Breakdown
Each 7 gallon batch yields 75 – 12oz servings.
At $3.50/serving, each batch produces $262.50 in revenue.
Over 50 batches, that amounts to $13,125 in sales.
Questions
What if my costs/brew ratios are different? Answer: Adjust the underlined values as needed and calculate your own profit. If you need help with the calculations we’d be happy to help!
What about waste? Answer: Cold brew is stable and lasts up to two weeks when properly stored in a refrigerated keg or air-tight container. Waste is less of an issue with cold brew than batch-brewed hot coffee because it lasts so much longer.
What happens when my filters run out? Answer: Alto Commercial Cold Brew Filter packs are $60 for a 50-pack. Volume discounts are available.
What if I don’t want to buy the whole kit? Answer: Alto Commercial Cold Brew Filters can be used in a wide variety of brew vessels.
Conclusion
When the total costs ($2,600) are factored in, each Alto Starter Kit produces over $10,500 in profit!! I think the better question is why not?
UPDATE 6/11 - Prices have been updated to include free shipping:
- 50-Pack of Filters is now $69.99
- Alto Starter Kit is now $139.99
Also in Blog
SCA Recap #2
© 2018 Alto Cold Brew.
